Posts Tagged ‘Commodity Market’

This explains the current manipulated take-down in the price of gold despite rising seasonal demand from India & China. There is a direct correlation between this sudden leap in the amount of gold swaps conducted by the BIS between July and August and the price attack on gold. The outstanding balance is now higher than it was in 2011, leading to the violent take-down of the price of gold then.

Rising interest in commodities reflects a sharp turnaround from a year ago, when these markets fell to historic lows that wiped away all gains from the 2000s. Booming commodity prices attracted new producers, flooding markets for everything from oil & gas to aluminum & wheat. As signs of inflation & improving global demand have returned, investors are beginning to pile back into commodities.

The commodity supercyle might be toast—but that doesn’t mean we won’t experience some wild bear market rallies. Today, you could jump on one of the great opportunities for a lightning fast hit-and-run raid on the commodities market. Commodities have found a patch of blue sky. I don’t know how long it’ll stay open, so let’s bask in the sunshine while we can.

You may ask yourself, how do you kill a zombie? As a market for the trading of physical gold and silver, the Comex is already dead. At some point, the entities who have stuck around to try their hand in the rigged paper game will either go broke or simply fade away. At that point, the bullion banks will be left to play only with themselves.

The anti-gold / silver propaganda is reaching epic levels again. It also happens to coincide with another multiple-day run on the gold in GLD and a record-breaking run up in the paper/gold ratio on the Comex. When history looks back on this period, one of the biggest official frauds will be the Fed’s empty threat of raising interest rates to help keep a lid on the precious metals.

Digging through the commodity market wreckage has been a grisly task these days. Busted charts everywhere, a wasteland of multi-year lows and broken trades. But after a six-year drubbing, copper is rising from the dead. That’s right – Dr. Copper’s springing back to life. And the best part? No one’s paying attention yet.

With US shale being one of the main culprits of excess crude oil production, storage of crude in US markets have risen above seasonally adjusted highs in the last year. This abundance of stored crude has pushed the current spot price of crude oil toward five-year lows, as current demand is just not there to take on more crude production.

According to Eric Sprott, gold stocks are reacting very positively to what seems to be a shift in people’s willingness to commit to the precious metals area. Momentum seemed to pick up a little bit in Jan and in Feb some of that has carried on. Investor sentiment surely seems to have shifted a little.

These Top Ten Market Themes represent the broad list of macro themes from Goldman Sachs’ economic outlook that they think will dominate markets in 2014, which also summarize their positive growth expectations. In short – It’s all about the Fed.